Freight Customers: access rights on Network Rail’s network

Bill Hammill

6 November 2014 Freight Customer Track Access Contracts

Why was this idea developed?

ORR’s response

- Consultation document – September 2009

  - Use existing freight model track access contract with revisions
  - Options in the way the freight customer access document could be structured

- Conclusions document – September 2010

  - Reflects on all consultation responses to inform our policy Freight Customer Track Access Contracts

Key points in the conclusions document

- What is a customer…..
- The structure of the Freight Customer Track Access Contract (FCTAC)
- The relationship between the FCTAC and the Freight Operating Company Track Access Contract (FOCTAC)
- How access rights are used by a freight customer’s ‘FOC of choice’
- The freight customer’s role under the FCTAC The structure of the Freight Customer Track Access Contract (FCTAC)

Model clauses - *front part*

- No Conditions Precedent; e.g. usual provisions on safety and licensing don’t apply to a freight customer

- Clause 5

  - how the access rights can be exercised; the ‘draw down mechanism’
  - Timetable Agent

- Clause 11

  - Claims Allocation and Handling Agreement: deleted as freight customers not party to it
  - Liability – annual cap of £5M; access rights not be made available to the freight customer Freight Customer Track Access Contracts

- FCTAC

  - Schedule 1 – contract particulars
  - Schedule 2 – information to assist making access proposals or Train Operator Variation Requests
  - Schedule 3 – forms of notices (hand out)
  - Schedule 4 – variations to services
  - Schedule 5 – services: the Rights Table Freight Customer Track Access Contracts

- FCTAC

  - Schedule 6 – events of default
  - Schedule 7 – access charges
  - Schedule 8 – (not used)
  - Schedule 9 – limitation of liability
  - Schedule 10 – network code modifications The relationship between the FCTAC and the Freight Operating Company Track Access Contract (FOCTAC) Freight Customer Track Access Contracts

How a FC can obtain a FCTAC (and access rights)

- Approach Network Rail

- Agree the type of access right/s and its/their characteristics

- General approval/specific approval

- Consultation

- Submission to ORR

- Many of the above processes are managed by Network Rail Freight Customer Track Access Contracts

- How a FOC obtains a FOCTAC

  - Approach Network Rail
  - General approval/specific approval
  - Consultation
  - Submission to ORR
  - Many of the above processes are managed by Network Rail How access rights are used by a freight customer’s ‘FOC of choice’

- The draw down mechanism will enable the FC to convey access rights directly to a FOCTAC

- They can then be ‘exercised’ by that FOC to transport the customer’s goods

- If the FC decides to change its FOC it can reclaim the access rights by issuing a revocation notice

- It can then draw them down to its new FOC of choice Freight Customer Track Access Contracts

- The draw down and revocation notices

  - Template format contained in Schedule 3 of the FCTAC
  - Contain Rights Table which will replicate (some of) the access rights from the FCTAC Freight Customer Track Access Contracts

- The FC’s role under the FCTAC

  - Awareness and knowledge of the engineering access statement and timetable planning rules
  - Deal with draw down mechanism and revocation notices – familiar with Rights Table
  - Under the FCTAC the FC is able to appoint an Agent to deal with such issues The FOCTAC

- Like the FCTAC, it’s based on the ORR model freight track access contract

- Provision which recognises the draw down mechanism

- Indemnity against multiple liability Freight Customer Track Access Contracts

Network Code

‘final conclusions’ publication identifies changes to Network Code undertaken to recognise FCTACs and FOCTACs

In particular: re the FCTAC

Part J

UIOLI

Freight transfer mechanism !! Freight Customer Track Access Contracts

- ORR’s web page: Access for Freight Customers
  - [http://orr.gov.uk/what-and-how-we-regulate/track-access/track-access-process/how-to-apply-for-track-access/access-for-freight-customers](http://orr.gov.uk/what-and-how-we-regulate/track-access/track-access-process/how-to-apply-for-track-access/access-for-freight-customers)
  - Criteria and Procedures for the approval of track access contracts – Chapter 9
  - Model contracts (FCTAC and FOCTAC)
  - Freight General approval
  - FCTAC - Conclusions document 15 September 2010
    - [http://webarchive.nationalarchives.gov.uk/20140113074601/http://www.rail-reg.gov.uk/server/show/nav.2299](http://webarchive.nationalarchives.gov.uk/20140113074601/http://www.rail-reg.gov.uk/server/show/nav.2299)